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American crypto exchange Coinbase has rolled out a new debit card that offers rebates, rewards, and zero transaction fees to customers.
Coinbase (NASDAQ: COIN) has launched a new debit card that offers users several perks, including crypto rewards and conditional zero transaction fees. The leading American crypto exchange offered further insight into its card’s posited reward structure, describing it as “rotating.”
According to Coinbase, in addition to earning a wide variety of crypto rewards, customers will also be able to diversify their crypto portfolios. Furthermore, they will earn up to a 4% rebate on every purchase using various digital currencies. Speaking on how its reward scheme plays out, Coinbase said:
“Rewards will have an expiration date. If a customer doesn’t select a reward when the next rotation is launched, we’ll automatically give them the reward with the highest crypto-back rate so they can diversify their earnings.”
Coinbase also stated that it was removing transaction fees on all crypto spending to further aid a seamless user experience. As the crypto exchange platform put it in a blog post:
“[Coinbase] is also removing the transaction fee for all crypto spending and allowing customers to get paid into Coinbase with no fees on deposits so they can easily fund their card in any currency.”
This also means that if customers desire payment in crypto, the exchange will automatically convert their paycheck from USD to crypto – without transaction fees. However, Coinbase stated that it will continue to apply a spread whenever customers buy, sell, or trade crypto assets.
The New Coinbase Card Is Part of a Broader Emerging Trend
Coinbase’s new card is issued by MetaBank and facilitated by Marqueta. In addition, the payment card will be available for use anywhere Visa (NYSE: V) debit cards are also admissible. Furthermore, the Coinbase card will become available to customers throughout the US, except customers in Hawaii. The crypto exchange platform also revealed plans to remove its waiting list later this spring to allow eligible US customers to sign up.
Coinbase’s latest initiative is the latest indicator of players in the crypto space looking to attract customers with reward-yielding debit cards. In addition, it also comes on the heels of rival platform Robinhood rolling out a new cash card. According to Robinhood, its new cash card offers a slew of rewards to its users, including crypto bonuses.
Robinhood is a financial services company that pioneers commission-free stock trading, exchange-traded funds, and digital currencies via a mobile app. As of last year, the platform had a user base of 31 million. In addition, it also had a crypto wallet waiting list of 1.6 million people.
Binance, the world’s largest crypto exchange platform, also offers a Visa debit card to its customers. This payment card promises up to 8% cashback on all eligible purchases made with the product.
Founded in 2012 and currently operating without physical headquarters, Coinbase is the largest crypto exchange in America by trading volume. In response to the February 24th Russian invasion of Ukraine, Coinbase blocked 25,000 crypto wallet addresses related to Russia.